Air India may scale down employee pay cut plan

New Delhi: National carrier Air India may review its plans to cut 50% performance-linked incentives of its 32,000 staff across the board, and instead consider a graded cut in the range of 20-50% based on employee salaries.
A wage restructuring committee, set up by the airline’s CMD Arvind Jadhav, presented a wage cost reduction plan last week to the company board, said an official in the civil aviation ministry, requesting anonymity.
“The committee has proposed to cut PLIs in the range of 20-50% depending upon employees’ total salary. A final decision is yet to be taken,” said an official, who attended the board meeting.
By slashing 50% PLIs of its work force, the company could save about Rs 750 crore of its about Rs 3,000 crore annual wage bill. The airline’s proposal to effect 50% across-the-board cut in PLIs had last month met with resistance from employee unions.
The Aviation Industry Employees Guild (AIEG) and the Air Corporation Employees Union (ACEU) went on a hunger strike to protest against the move. The two unions represent over 50% of the airline’s total staff.
16/09/09 Nirbhay Kumar/Economic Times

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Categories: NACIL Sep 2009